Naira recovers dramatically ahead take-off of new FX regime

The naira recovered dramatically at the parallel market on Monday, moving from N355 on Friday to N330 at 9am on Monday as a result of the kick-off of the new foreign exchange regime.

Traders in Nigeria’s commercial capital, Lagos, said the market was moving with so much uncertainties, forcing traders to buy dollars at prices not seen in few months.

Isiaka Baba, a trader in Lagos who spoke to TheCable, said he will advise everyone who is keeping dollar to go sell them, adding that the price was moving dramatically.

“The way the naira is going now is unprecedented, many traders have lost on all currencies. Dollar is selling at 330, and may go as low as 250 before the end of the day,” he said.

“Euro that we buy at 400 is now selling near 300, while the pounds is moving close to 400, from its position at 500, just last week.”

A trader in the Surulere area of Lagos said the quote for the day at the parallel market was not out yet and those trading at this time were doing so at their own risk.

Another trader who spoke to TheCable from Abuja, said the dollar was also selling at 330 at the nation’s capital, while the pounds was down to 475, from over 500 on Friday.

“We hear that CBN will sell dollars to some banks at 12 noon, and we expect the market to move accordingly, so the naira may trade at 300 to the dollar before the end of today,” he said.

On Wednesday, the Central Bank of Nigeria (CBN) said the equilibrium position of the naira to the dollar will be purely driven by market forces from Monday, June 20 – this has begun to take its course.

Commercial banks are yet to release their quotes for the day.